In recent weeks, the value of gold has been on the rise in contrast with the Bitcoin and S&P 500 market. Since the precious metal plunged to $1,670 in June, it has continued to show strength. Days ago, gold’s value rose above $1,800 for the first time since the post great recession rally.
Reportedly, gold value is on the rise thanks to several new trends, including central-bank gold purchases, extremely easy monetary policy, and a weakening dollar. As a result of gild price actions, Bitcoin analysts are taking a cue from the asset to analyze Bitcoin price action too.
Bitcoin price until recently stalled between $9,100 – $9,200, after which it went back and forth and trading at the time of filing this report for $9,168.
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How gold would aid Bitcoin price surge
As mentioned above, gold price has continued on the upward trend, unlike the Bitcoin and S&P500 market. BTC_JackSparrow, a trader and market analyst in his analysis, forecasted that should BTC follow the trail blazed by gold, it will also breakout.
He predicted the breakout would take BTC towards $10k and later $11k.
Is #Bitcoin lagging Gold? pic.twitter.com/HdMisBDKsu
— //Ethereum ??ack ?? (@BTC_JackSparrow) July 9, 2020
Billionaire hedge fund manager Paul Tudor noted that there are no explicit correlation between both markets but said Bitcoin and gold both have properties that will allow them to excel in the current macroeconomic environment.
Gold to surge higher than $1,800
Towards improving conditions for Bitcoin’s bull case, analysts say gold is poised to surge further. Mike Novogratz, Galaxy Digital CEO, said in an interview that gold would almost hit the $2,000 benchmark very soon.
“The Federal Reserve and central banks around the world just keep printing money – more money, more money, more money. And so, gold is going to take out the old highs, $1,950 or something, and it is going to keep going. I think we are just starting this move.”
In the CEO’s Bitcoin price prediction, he predicted earlier that BTC would hit its all-time high $20,000 this year or next.